Find Credit Card Hardship Programs From Your Creditor
Credit card hardship programs may provide payment assistance when job loss, reduced income, medical bills or another financial setback makes your monthly payment difficult to afford.
However, every creditor handles financial hardship differently. Therefore, use the directory below to find DebtWave's guide for your bank, credit union or store credit card.
If several cards are creating financial pressure, nonprofit credit counseling can also help you compare individual creditor assistance with a Debt Management Program.
Creditor terms vary • Free nonprofit counseling • No new loan required for a DMP
How Do Credit Card Hardship Programs Work?
A credit card hardship program is an arrangement that may help an eligible cardholder when financial circumstances make the normal payment difficult to manage.
However, there is no single hardship program used by every bank. Available assistance depends on the creditor, account status and individual circumstances. The Consumer Financial Protection Bureau recommends contacting your credit card company as soon as you know you may have trouble making a payment.
Contact Your Creditor
Explain what changed financially and ask which payment-assistance options currently apply to your specific credit card.
Review the Complete Terms
Ask about the payment, APR, fees, program length and account status. Additionally, find out what happens when the arrangement ends.
Compare Your Full Debt Picture
If several credit cards strain your budget, compare individual hardship programs with nonprofit credit counseling and a Debt Management Program.
Find Your Credit Card Company
Search by bank, credit union, retailer or card name. Additionally, many retail cards are issued by a larger bank, so searching the issuer may also help you find the right guide.
Bank & Credit Union Hardship Programs
Start here for major bank, credit union and general-purpose credit card hardship guides.
Retail & Store Credit Card Hardship Programs
Store cards often carry a retailer's name while a bank actually issues and services the credit account.
DebtWave works with many creditors that may not yet have a dedicated hardship guide. Therefore, a counselor can still review your account and explain available next steps.
What to Ask About a Credit Card Hardship Program
A lower payment can sound appealing. However, the payment amount is only one part of the arrangement.
Before accepting creditor assistance, ask enough questions to understand both the immediate relief and the longer-term effect on your account.
What If You Need Hardship Help From Several Credit Cards?
One credit card hardship program may work well when a single account creates most of your financial pressure. However, many consumers have balances with several different creditors.
Calling each creditor separately can produce different payments, interest rates, due dates and program lengths. Consequently, the total monthly debt burden may remain difficult to manage.
Nonprofit credit counseling provides another way to look at the problem. Instead of reviewing only one account, a counselor can evaluate your complete unsecured debt picture alongside your household budget.
Credit Card Hardship Programs vs. a Debt Management Program
Both approaches may help when monthly credit card payments become difficult. However, they solve different types of problems.
Direct hardship assistance generally focuses on one creditor. By comparison, a Debt Management Program may coordinate several eligible participating accounts. The Federal Trade Commission also provides consumer information about credit counseling and how Debt Management Plans generally work.
| Feature | Creditor Hardship Program | Debt Management Program |
|---|---|---|
| Who provides it? | Your credit card company | Nonprofit credit counseling agency |
| Accounts addressed | Usually the specific creditor account | Multiple eligible participating accounts may be included |
| New loan required? | No | No |
| Payment changes? | Depend on creditor and account | Depend on participating-creditor guidelines |
| Interest changes? | May vary by hardship arrangement | Participating creditors may provide reduced rates |
| Household budget review? | Not usually the primary service | Included in the credit counseling process |
| Multiple creditors coordinated? | Generally no | Potentially, for eligible participating accounts |
Estimate Your Debt Management Program Payment & APR
If you have several high-interest credit cards, compare your current payments and APRs with estimated Debt Management Program terms.
DebtWave's calculator includes many participating creditors. Therefore, you can enter multiple balances and see how a broader repayment strategy might compare with individual hardship arrangements.
Calculator results are estimates. Actual participation, payments, interest rates and creditor concessions depend on the individual account and current creditor guidelines.
When Credit Card Hardship Programs Are Not Enough
Direct creditor assistance can be an excellent first option when one credit card causes most of the problem. However, reducing one payment may not fix a budget strained by several high-interest balances.
For example, one creditor may lower a payment while three other cards continue charging high interest. Consequently, the household may still struggle with the total amount going toward debt each month.
DebtWave Credit Counseling, Inc. is a 501(c)(3) nonprofit organization that has provided credit counseling and financial education since 2001.
Additionally, a counselor can review your balances, payments, interest rates, income and household expenses. That broader review can help you compare creditor hardship programs with a Debt Management Program.
Why Use DebtWave's Credit Card Hardship Program Guides?
Creditor programs and servicing information can change. Therefore, each DebtWave guide focuses on the creditor, account-specific assistance and questions worth asking before accepting an arrangement.
Creditor-Specific Information
Learn who services the account and where to begin when financial hardship makes a payment difficult.
Compare More Than the Payment
Consider interest rates, program duration, account status and what happens after temporary assistance ends.
Review the Bigger Picture
When several cards create financial pressure, compare creditor assistance with nonprofit credit counseling.
Common Questions About Credit Card Hardship Programs
What is a credit card hardship program?
A credit card hardship program is creditor assistance that may help eligible cardholders experiencing financial difficulty. However, specific payments, interest rates, fees and program lengths vary by creditor and account.
Do all credit card companies offer hardship programs?
Many creditors provide some form of payment assistance. However, they may not call it a "hardship program." Therefore, ask about financial hardship, payment assistance, repayment plans or account-management options.
Do I have to miss payments before asking for help?
Not necessarily. If you believe an upcoming payment may become difficult, consider contacting the creditor early. That gives you time to understand available options before the situation becomes more difficult.
Can a hardship program lower my credit card interest rate?
Some arrangements may change an interest rate. However, a lower APR is not guaranteed. Ask the creditor whether the APR changes, how long the new rate lasts and what happens afterward.
More Credit Card Hardship Program Questions
Will a credit card hardship program close my card?
Account treatment varies. For example, a creditor might leave a card open, restrict new purchases or close the account under certain arrangements. Therefore, ask before accepting the program.
What if I need hardship programs from several creditors?
You can contact each creditor separately. However, nonprofit credit counseling may also help you review the accounts together. That broader review can help determine whether individual arrangements or a DMP better fits your budget.
Is a Debt Management Program another consolidation loan?
No. A traditional Debt Management Program does not require you to borrow new money. Instead, eligible participating balances are repaid through a structured program.
Can a Debt Management Program reduce credit card interest rates?
Participating creditors may provide reduced interest rates or other concessions under their current guidelines. However, DebtWave cannot guarantee a particular APR, payment or creditor benefit.
How can I estimate my DMP payment before speaking with a counselor?
Use DebtWave's Debt Management Plan Calculator to enter your creditors and compare current terms with estimated DMP terms.
Don't Stop at One Credit Card Hardship Program
If one card is causing the problem, start by contacting that creditor and reviewing its available payment assistance.
However, if several credit cards are straining your budget, look at all of them together. A free DebtWave counseling session can help you compare balances, interest rates, payments and repayment strategies.
Ultimately, you decide whether direct creditor assistance, paying the cards yourself or a Debt Management Program fits your situation.
Credit card hardship programs, payment-assistance arrangements, eligibility requirements, interest rates, fees and account terms can change. DebtWave Credit Counseling, Inc. does not control creditor hardship policies. Debt Management Program eligibility, creditor participation, interest rates, payments and concessions vary by creditor and individual account. Calculator results are estimates and do not guarantee creditor terms, savings or program eligibility. DebtWave is a 501(c)(3) nonprofit organization and does not lend money. Information on this page is educational and should not be considered legal or tax advice.